Loading judgment…
Facts
The assessee received gifts of Rs. 3.75 Lacs from his sister and Rs. 3 Lacs from his father-in-law. The Assessing Officer and CIT(A) rejected the explanations provided by the assessee regarding the source and nature of these gifts, treating the total amount of Rs. 6.75 Lacs as the assessee's income.
Held
The Tribunal found that the assessee had discharged the onus by providing evidence of the gifts, including a gift deed for a moveable asset (not requiring registration) and banking channel transfers. It noted that lower authorities failed to conduct independent inquiries from the donors. The Tribunal accepted the assessee's explanation and deleted the addition of Rs. 6.75 Lacs.
Key Issues
Whether the addition of gifts received from the assessee's sister and father-in-law is justified when the assessee provides explanations and the lower authorities fail to conduct independent verification.
Sections Cited
143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
(िनधा�रण वष� / Assessment Year: 2014-15) Shri Avtar Singh Gill DCIT Circle बनाम/ Vs. H. No 2232-P, Sector 20 Panchkula. Huda Part III, Sirsa �थायीलेखासं./जीआइआरसं./PAN/GIR No. ABTPG-0437-D (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by : Shri Narender Bansal (Advocate) & Shri Yogesh Bansal (CA) – Ld. ARs ��थ�कीओरसे/Respondent by : Shri Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 07-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2014-15 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 21-03-2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. of the Act on 13-11-2019. The sole grievance of the assessee is confirmation of addition of gifts of Rs.6.75 Lacs. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under.
It emerges that the assessee received gifts of Rs.3.75 Lacs from his sister and another gift of Rs.3 Lacs from his father-in-law. The assessee’s sister is stated to have given gift out of sale proceeds of agricultural land and the assessee being power of attorney holder received sale consideration of Rs.3.75 Lacs on his sister’s behalf. In support, a photocopy of the sale deed was furnished by the assessee. The gift of Rs.3 Lacs was received from father-in-law through NEFT and the same was also stated to be sourced out of agricultural income. However, Ld. AO rejected the explanations of the assessee and considered the amount of Rs.6.75 Lacs as the income of the assessee.
The Ld. CIT(A) rejected the explanation of the assessee on the ground that the gift deed from sister was not registered one. The power of attorney was not furnished. Similarly, there was immediate cash deposit in the bank account of assessee’s father-in-law before transfer of gift to the assessee through NEFT. Finally, the additions were confirmed. Aggrieved, the assessee is in further appeal before us.
In the above factual background, we find that the assessee has duly discharged the onus of receipt of gifts before lower authorities. The gift from sister is evidenced by gift deed which does not require mandatory registration since it was for moveable asset. Similarly, the gift from father-in-law is through banking channel and the donor is stated to have earned agricultural income. We find that no independent enquiry has been conducted by lower authorities from the donors to fortify their case against the assessee. In the absence of any contrary evidences, the explanation of the assessee is to be accepted. In the result, the impugned addition of Rs.6.75 Lacs stand deleted. We order so. No other ground has been urged in the appeal.
The appeal stand partly allowed. Order Pronounced on 18-08-2025. Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT CHANDIGARH